It’s hard to pinpoint exactly why the collection’s floor price has dropped so dramatically, though it’s likely due to a combination of factors, said Oliver Cohen, president of NFT analytics tool Inspect. Determining the value of an NFT is slightly more nuanced than just looking at the floor price of a collection. Many generative art NFT collections have embedded rarity traits, which contribute to the perceived scarcity and desirability of an NFT. Deep NFT Value is a tool that uses machine learning to analyze high-value NFT collections based on previous sales, current market conditions, and rarity traits.
The cultural significance of a particular NFT can also factor into its price. For example, in Jack Butcher’s Checks VV, NFTs with notable edition numbers like #1 or #420 can sell for more than the floor price. NFT collection Pudgy Penguins is an example of an NFT collection that recently experienced a major upswing thanks to a change in leadership. Another example of a culturally significant NFT that sold well above its collection’s floor price was Dmitri Cherniak’s Ringers #879, affectionately known as The Goose.
When looking at an NFT collection as a whole, floor price is helpful in conveying how popular a project is at a given point in time. Analyzing changes to a collection’s floor price over time can reflect public sentiment. Knowing this information allows us to look back at Justin Bieber’s NFT purchase with a new perspective.